Premium Essay

The Importance of Retention Systems in Human Resource Management

In:

Submitted By nijone24
Words 2783
Pages 12
Literature Review (8-10 pages 12 sources)
The Importance of Retention Systems in Human Resource Management

Abstract
Retention systems is one of the most important components of a staffing system within an organization. Human Resources is responsible for obtaining human capital in order for an organization to obtain and maintain productivity and profits. Human capital is a major expense and investment within organizations. If the organization is unable to retain its workers, the organization nets substantial losses on each employee it is not able to retain. Losses presents themselves not only in production costs, but training and development dollars invested in the employees as well, in addition to recruitment and hiring costs. My literature review will introduce and evaluate common types of retention systems used by staffing systems and their effectiveness in the workplace.

Author of “An Analysis of Human Resource Information Systems impact on Employees”, Kelly O. Weeks describes the overall basic benefits of Human Resource Information Systems. She states in her article “systems give the organization the ability to consistently develop and manage employees based on the value of an individual's contribution”. The article also describes the various ways in which HR systems can improve job productivity by cutting repetitive work, and increasing the speed in which manual processes are managed. This article provides a basic general educational foundation and working knowledge of various Human Resource Management Systems, and Human Resources systemic function within the organization. In this article, the author details the use of a Human Resource Information System and how they assist HR personnel focus on strategic planning, by providing better knowledge management, which can improve an organization's competitive advantage.
Jeffery B. Arthur, author of “Effects

Similar Documents

Premium Essay

Impact of Job Analysis on Job Performance

...Journal of Diversity Management – Second Quarter 2010 Volume 5, Number 2 Impact Of Job Analysis On Job Performance: Analysis Of A Hypothesized Model Rehman Safdar, Pakistan Electronic Media Regulatory Authority (PEMRA), Pakistan Ajmal Waheed, Quaid-e-Azam University, Pakistan Khattak Hamid Rafiq, National University of Modern Languages, Pakistan ABSTRACT Researchers have developed a relationship between HRM practices and organizational performance, but the relationship between HRM practice like job analysis – employee Job performance remains unexplored. This paper, based on a study of employees of Pakistan Public sector regulatory authorities of telecommunication, oil and gas, power, media, security exchange, banking sector and organizations being regulated by these authorities is an attempt to develop and test a hypothesized model linking HR importance of job analysis with employee job performance. Survey results of 568 employees indicated that practice of job analysis was strongly related to employee job performance. The findings suggest that an organisation-wide policy of job analysis is an important source of competitive advantage in its own right, and requires due attention of HR professionals. The study extends the findings of the HR–employee job performance research pursued in Western countries to a non-Western context. Keywords: Human resource management; HR practices in regulatory authorities; HR-performance linkage; Job analysis; Job performance; Job satisfaction;...

Words: 11718 - Pages: 47

Premium Essay

Functional Areas of Business

...areas: law, human resources management, leadership, accounting, finance, economics, research and statistics, operations management, marketing, and strategic planning. Each of these components has a very specific role and level of importance within a given organization. Even though it’s hard to measure one against another, some functional areas of business are more of a driving force than others. The two catalysts of success for managers begin with human resources management and leadership. In the last several years, “(CEOs) have increasingly emphasized the need for their firms to effectively attract, motivate, develop and retain talent (Wright, 2011, p. 93).” This role is filled by the human resources management team (HRM). This management role is tremendously challenging and forged with various members within the organization, mostly with managers. This is due in part because the HRM team staffs the manager with prospective employees. The HRM staff have a crucial role within the organization to hire “employees who share the company values, proving their expertise in business and an appropriate moral profile (Cruceru, 2010, p. 80).” HRM teams need to consider this when making all of their decisions, and making sure they have the hiring manager in mind so proper fit can be attained. The most important goal for the HRM team is not getting prospective top notch employees through the door, it’s retaining the staff once acquired. The importance of retention is imperative...

Words: 930 - Pages: 4

Premium Essay

Process Management

...Process Management (Evaluate) Please use the following 6 criteria to evaluate the attached paper on Human Resource and hiring process at HFHS. Also check for grammar and punctuation including structure of the paper. Corrected grammar and punctuation in original document I attached. I am using that to enter the evaluation information you requested. 1) Provide background information on the organization, why the process was selected for study, and the approach used to complete this assignment   Covered 2) Describe, Document and Flowchart the existing process. You may use a software tool for flowcharting (see information on flowcharting in the Course Content area). The paper describes the recruitment process but you need to detail the flowchart. If you look up flowcharts, you will find a flow chart more like this one that you can find at the following web location: http://www.kusd.edu/departments/human_resources/appl_process/applicationprocess.html The following is an example of a detail of the Application Process in HR. 3) Identify performance measures that you would use to determine the baseline performance for the current process in order to assess any improvements.       Covered very well. 4) Research the Web and other sources for benchmark information (best practices) on the selected process and/or similar processes. Summarize your research findings. Identify the sources and best practices found that could be transferred to your redesigned process in Item...

Words: 3880 - Pages: 16

Premium Essay

Hr Case Study

...Cindy Following on from our recent discussion, I appreciate your openness about the current situation and for the opportunity to justify the importance of Human Resources (HR) as a value added function, especially as we move towards a new corporate structure. If correctly aligned to the business strategy, HR is critical in ensuring the success of the transition. Under Arnold’s leadership, the focus was to operate as a “one family company”, with HR was responsible for organising expensive leadership programs and sales conferences. There is a lot more to the role of HR than what the Board understands. Let me explain – 1. Using your knowledge of HR strategy, provide a rationale for the contribution of HR to the change process in this corporate context. With the impact of globalisation and the need to remain competitive, companies have had to reassess various departmental activities to meet new organisational objectives (Lawler & Mohrman, 2003). A new strategic role for HR is one of these changes. Cabrera & Bonache (as cited in Lengnick-Hall et al., 2009) argued that Human Resource Management (HRM) practices are an essential part of a company’s corporate business strategy. Combining business strategy and people management together creates a new set of responsibilities, a bigger challenge for HRM and an increase in HR deliverables (Conner & Ulrich, 1996). Therefore, HR professionals must concentrate more on HR strategy, and move away from the traditional...

Words: 1448 - Pages: 6

Premium Essay

Human Resources

...company when the retention rate of the company is high 4 2.2 The activities that the company provides to their employees --------------5 2.3 The problems or barriers that company faced to ensure the higher retention rate---------------------------------------------------------------------------------------------8 2.4 The factors that will affect employees to retain--------------------------------9 2.5Relationships between retention rate and performance of the company-10 3.0 OBJECTIVE OF THE STUDY 13 4.0 METHODOLOGY 15 5.0 FINDINGS 17 6.0 DISCUSSION 28 7.0 LIMITATION 33 8.0 RECOMMENDATION 35 9.0 CONCLUSION 37 10.0 REFERENCES 38 11.0 APPENDIX 39 1. INTRODUCTION Human resources are comprised of individuals in the workforce of an organization. In the article by Rishma Vedd, and Reza Kouhy. (2001), Management Accounting & Strategic Human Resource Management, Wright & McMahan (1992) had defined human resources as the pool of employees under the firm’s control in a direct employment relationship. In a more simple word, human resources also known as labors, which is one of the four factors of production. An organization’s human resources should be managed to maximize return on investment in the organization’s human capital and minimize financial risk by aligning skilled and qualified individuals to the organization’s ongoing and future business plans. According to article by Rishma Vedd, and Reza Kouhy. (2001), Management Accounting & Strategic...

Words: 9610 - Pages: 39

Premium Essay

Strategic Resource Management

...Unit 7.3 Strategic Resource Management Level 7 Contents Introduction 1.1 Investigate how human resource management contributes to the achievement of organisational objectives 1.2 Critically evaluate the role of human resource management within an organisation 1.3 Appraise the processes that an organisation uses to plan its human resource requirements 2.1 Evaluate the recruitment and retention strategies used in an organisation 2.2 Critically assess the techniques that are used for employee development in an organisation 2.3 Evaluate the contribution of human resource development techniques in ensuring employee engagement 2.4 Systematically analyse the effectiveness of human resource management strategies in supporting organisational strategy 3.1 Investigate how physical resource management contributes to the achievement of organisational objectives 3.2 Critically evaluate the role of physical resource management within an organisation 3.3 Systematically appraise the processes that an organisation uses to plan its physical requirements 4.1 Investigate how marketing activities contribute to the achievement of organisational objectives 4.2 Critically evaluate the role of marketing operations within an organisation 4.3 Systematically appraise the processes that an organisation uses to develop its markets 5.1 Investigate how information systems management contributes to the achievement of organisational objectives 5.2 Critically evaluate the role...

Words: 4144 - Pages: 17

Premium Essay

Hr and Social Media

...Jamshedpur 'Outside-In' - Cultural shift in Human Resource Management in Corporate India in the age of the social media BY: RIYA RASHMI HUMAN RESOURCE MANAGEMENT BATCH OF 2014-16 XLRI, JAMSHEDPUR SOCIALISING HR The report deals with analyzing the past, present and future of HRM with reference to the entering of social media platform in the corporate world. With many of the companies thinking over the issue, it has become very important to evaluate the scope of social media in the field of HR so as to leverage the share of HR as a business partner. Earlier HR being just a cost centered function of a company was into little notice of the stakeholders. But now as the importance of the aspect of people has sparked, the corporate world needs to emphasize on this differentiating function. Sandwiched between the management and the employees, the HR department forms the crux of a corporate. So, the transformation that needs to come through this function shall be of great importance. The use of social media is a very new concept and we need to evaluate the system so as to use it effectively.   Table of Contents 1. HISTORY OF HRM IN INDIA - 2 - 2. NEED FOR A CHANGE - 2 - 3. SOCIAL MEDIA AND HRM: - 3 - 3.1. WHY SHOULD HR USE SOCIAL MEDIA? - 3 - 3.1.1. Influence analysis: - 4 - 3.1.2. Engagement and Retention: - 5 - 3.1.3. Employee Onboarding: - 5 - 3.1.4. The modern...

Words: 2710 - Pages: 11

Premium Essay

A Brief Overview of Human Resource Management Issues in the Public Sector

...A Brief Overview of Human Resource Management Issues in the Public Sector Kurt Sager University of New Mexico Abstract This paper is based on interviews with professionals in the human resources and management/supervisory fields soliciting their views as to what they considered to be the main issues confronting them in their jobs from a human resource management point of view. Open ended questions were asked of each respondent in an effort to solicit knowledgeable responses from informed sources. Although human resources and management issues are diverse and seemingly innumerable, a few basic issues rose to the forefront during the separate interview sessions. These basic issues are discussed in some depth, and a short work biography is given for each respondent with the intention of putting the basic issues mentioned in context to the interviewees’ respective work situations. Keywords: human resources, recruitment, retention, training, legal compliance, politics A Brief Overview of Human Resource Management Issues in the Public Sector Respondent Introductions Since the topics discussed in this paper were taken directly from responses gleaned from face-to-face interviews with a Human Resources Director and two managerial level supervisors, a brief description of their respective work environments, positions and responsibilities may help the reader understand relationship(s) between...

Words: 4091 - Pages: 17

Premium Essay

Employee Retention

...reliable employees. Human resource planning plays a pivotal role in helping reduce employee turnover and retention. To motivate, retain and keep employees focused on the organization’s purpose, implementing effective strategies and policies will help tackle the challenges of employee retention. Managing Employee Retention Human resource planning plays a pivotal role in the effective management of employees to improve employee retention. Poor planning can result in discouraged employees and high turnover rates. The ability of managers and organizations to perform effectively becomes stagnant, creating a negative impact on operations. Employee retention can be difficult to achieve, and managers are more likely to have problems managing employees effectively if not planned well (Arnold, 2005). Developing effective employee retention strategies can have a positive impact on an organization’s ability to retain employees. Implementing effective human resource management strategies and policies can establish and maintain an appropriate culture in an organization. Applying the proper strategies and policies for human resource planning in organizational culture, employee selection and placement, compensation, training, development, and appraisal, it will enable operating managers to improve the likelihood of successfully retaining employees. Human Resource Planning Human resource planning is arguably the most important human resource function for operating...

Words: 1759 - Pages: 8

Premium Essay

Principles of Management

...Human Resource Accounting Human Resource Accounting is the process of assigning, budgeting, and reporting the cost of human resources incurred in an organization, including wages and salaries and training expenses. Human Resource Accounting is the activity of knowing the cost invested for employees towards their recruitment, training them, payment of salaries & other benefits paid and in return knowing their contribution to organisation towards it's profitability. Contemporary Issues •Human Resource Audit ◦Objectives and benefits of Human Resource Auditing ◦Human Resource Auditing Process •Human Resource Accounting ◦Methods of Human Resource Accounting •Human Resource Information Systems •Outsourcing and Crowdsourcing •Employer Brand •Temping or Temporary Staffing •Attrition •Call centers •Exit interviews •Stress Management •Balanced scorecard •Competency mapping •Human Resource Benchmarking •Employee absenteeism The American Accounting Association’s Committee on Human Resource Accounting (1973) has defined Human Resource Accounting as “the process of identifying and measuring data about human resources and communicating this information to interested parties”. HRA, thus, not only involves measurement of all the costs/ investments associated with the recruitment, placement, training and development of employees, but also the quantification of the economic value of the people in an organisation. Flamholtz (1971) too has offered a similar...

Words: 1576 - Pages: 7

Premium Essay

Human Resource Management

...Unit 6.1 Human resource Management Table of Content Content............................................................................................................................Page Introduction....................................................................................................................3 LO 1................................................................................................................................3 Strategic Human Resource Management........................................................................3 Strategic Human Resource Management Model............................................................4 Importance of SHRM.....................................................................................................4 Framework of SHRM.....................................................................................................5 LO2.................................................................................................................................8 HRM process..................................................................................................................8 Roles in SHRM..............................................................................................................9 Development and implementation of HRM strategies..................................................10 LO 3............................................................................................

Words: 4642 - Pages: 19

Premium Essay

Management

...CASE STUDY OF VODAFONE 1 Role of Training and Development in Employee Retention Case Study of Vodafone 2 ABSTRACT Employees are the strategic asset of any organization; this talent has to be managed and preserved. This project presents a descriptive study, which mainly investigates on the functioning and role of training and development in employee retention, a case study of VODAFONE, a leading telecommunication company of UK, has been presented in this research. This study also investigate on the significance of training and development in managing of employees, different types of training methods in use, and its effects on retention of employees and about benefits which company gains as well. The study mainly helps in finding about the benefits of training and development in retention of employees as well as about the retention of companies information as well. This study emphasizes the role of training and development plays a very crucial role in retaining the capable employees, which are the precious assets treasured by all organizations. Keywords: retention, T&D (Training and Development), Vodafone Contents 3 Abstract ......................................................................................................................................3 Acknowledgements .....................................................................................................................8 CHAPTER 1: INTRODUCTION .........................

Words: 22328 - Pages: 90

Free Essay

Well Defined Compensation and Benefits Plan

...whether directly (compensation) or indirectly (benefits) (Katz, 2012). A strong and competitive compensation and benefits package is a powerful instrument for attracting and retaining the best talent. The development of a flexible compensation and benefits plan has an impact on employee retention and recruiting activities. The goal is to design the compensation and benefits package to attract qualified and talented applicants, as well as retain the current employees that are important and bring value to the organization. Reducing Turnover with a Compensation Strategy HR Function. HR serves in a consultative capacity to the managers and leaders of the organization and is responsible for the implementation of activities or policies in staffing, recruitment, data analysis, reward and recognition, and advising with regard to federal law compliance (Pophal, 2010). The human resource function “serves to align the wants and needs of the employee with the wants and needs of the employer” (Rothwell, Prescott, and Taylor, 2008). Recruitment and retention should be the main focus of HR and if not effectively managed can prove to be a huge risk to the organization. Another function of human resources is creating the employee compensation and benefits package and making sure that the compensation and benefits strategy aligns with both the HR strategy and the firm’s organizational strategy. Reducing Turnover. The compensation package design “should be based on a company’s pay philosophy...

Words: 3272 - Pages: 14

Premium Essay

Managing Your People

...|. | | | |[pic] | | | | | |Module | | | |Managing your People | | | | | | | | ...

Words: 4238 - Pages: 17

Premium Essay

Hr Process

...formulation of certain strategies and execution of the same, which is done by the HR department. At the base of this strategy formulation lie various processes and the effectiveness of the former lies in the meticulous design of these processes. But what exactly are and entails these processes? Let’s read further and explore. The following are the various HR processes: Human resource planning (Recruitment, Selecting, Hiring, Training, Induction, Orientation, Evaluation, Promotion and Layoff). Employee remuneration and Benefits Administration Performance Management. Employee Relations. The efficient designing of these processes apart from other things depends upon the degree of correspondence of each of these. This means that each process is subservient to other. You start from Human resource Planning and there is a continual value addition at each step. To exemplify, the PMS (performance Management System) of an organization like Infosys would different from an organization like Walmart. Lets study each process separately. Human Resource Planning: Generally, we consider Human Resource Planning as the process of people forecasting. Right but incomplete! It also involves the processes of Evaluation, Promotion and Layoff. Recruitment: It aims at attracting applicants that match a certain Job criteria. Selection: The next level of filtration. Aims at short listing candidates who are the nearest match in terms qualifications, expertise...

Words: 517 - Pages: 3